Federal Reserve Vice Chairman for Supervision Randal Quarles told an International Monetary Fund forum that he didn’t think ILCs were problematic; applications should be reviewed and granted based on the strength of the application; this is a shift for the Fed as they have said in the past that ILCs were an issue and that Congress should consider cracking down on them. Source.
The Federal Reserve has finally opened up the Main Street Lending Program for registration; this is the program targeted towards...
This week’s PeerIQ Weekly Industry Update covers the Fed raising rates by 25 bps, Affirm’s big fundraising and securitization news; PNC announced their new lending pro cuts through their mobile wallet and anticipate it will outperform branch loans; Equifax completed their first Securitization, a $200mn deal backed by lender fee revenues; PeerIQ does a deep analysis on the Sharpe Ratio which helps to gauge risk-adjusted returns. Source.
The Federal Reserve is making changes to the asset cap on Wells Fargo in order to get more money into...
While small businesses have been able to access credit during the current crisis, this is not the case for many...
Randall Quarles, vice chairman for supervision at the Federal Reserve made recent comments about taking a fresh look at regulations; He stated, “History has shown us that, it’s not just a question of where has the risk that we knew moved, but what new risks are developing? I think that in the regulated area … we ought to be looking at what the implications of the growth of fintech ... I think we ought to be looking at cyber, obviously.” Source
DocuSign will now be a federal technology provider as it was certified by the Federal and Authorization Management Program (FedRAMP); the company is the first and only e-signature company authorized for use; the FCC will be the first to use DocuSign for procurement and human resources; DocuSign has previously worked with local government agencies. Source
Alternative data scoring considerations are becoming more prevalent in today's credit market; the Consumer Financial Protection Bureau (CFPB) has announced a public comment period seeking feedback on the potential use of alternative credit sources such as mobile phone bills and rent payments in credit approvals; the CFPB is seeking to identify how it might be able to serve consumers with minimal credit history; it says that approximately 26 million Americans have no credit histories and an additional 19 million consumers lack enough credit information to produce a credit score. Source
The Federal Reserve released a report saying that P2P loans resemble predatory loans; the report cautions on the industry’s rapid origination growth and rising defaults; they also say the industry as a whole has the potential to destabilize consumer balance sheets; the research also shows taking out a P2P loan hurts credit scores and credit card balances increase; the report also points to the benefits of taking out a loan as well. Source.
The Federal Reserve increased its federal funds rate by 0.25% following its March Federal Open Market Committee meeting; the rate is now at 0.75% to 1.00%; the Fed also alluded to plans for two more rate increases in 2017. Source